Fab Automation Industry worth $41.44 billion by 2032
The report "Fab Automation Market By Automated Material Handling Systems, Robotics & Handling Equipment, Equipment Control Software, Advanced Process Control, 200 mm, 300 mm, Integrated Device Manufacturers (IDMs), Foundries, and OSATs - Global Forecast to 2032" The fab automation market is expected to grow from USD 25.24 billion in 2025 to USD 41.44 billion by 2032, growing at a CAGR of 7.3%. Key drivers for the fab automation market include the rising need for higher throughput, yield consistency, and contamination control in semiconductor manufacturing. Automation solutions, including automated material handling systems (AMHS), advanced robotics, manufacturing execution systems (MES), and advanced process control (APC), enable real-time monitoring, optimized wafer movement, and improved process stability. Expanding 300 mm and advanced-node production, coupled with increasing demand from AI, 5G, automotive, and HPC applications, further accelerates adoption. Additionally, advancements in AI-driven analytics and digital twin technologies are expected to strengthen market growth.
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By offering, the software segment is expected to register the highest CAGR during the forecast period.
The software segment is projected to record the highest CAGR in the fab automation market during the forecast period, driven by the increasing need for advanced control, coordination, and optimization across highly complex semiconductor manufacturing environments. As fabs transition toward next-generation nodes and higher wafer volumes, software platforms such as manufacturing execution systems (MES), equipment control software (ECS), advanced process control (APC), yield management software (YMS), AI/ML-based predictive analytics, and digital-twin simulation tools are becoming essential for managing real-time decision-making, process stability, and predictive operations. These solutions enable fabs to reduce cycle-time variability, enhance equipment utilization, and maintain ultra-low defectivity levels required for advanced logic, memory, and heterogeneous integration technologies. The rise of data-driven manufacturing, tighter cross-tool integration, and the shift toward autonomous production workflows further strengthen the adoption of software-centric automation. Additionally, increasing investment in smart factories, greenfield fabs, and digital transformation initiatives across leading IDMs, foundries, and OSATs underscores the growing strategic importance of software. As semiconductor processes become more intricate, the software layer is emerging as the primary enabler of operational intelligence, scalability, and manufacturing excellence in global fabs.
Based on wafer size, the 300 mm segment is likely to account for the largest market share in 2032.
The 300 mm wafer size segment is expected to remain the largest in the fab automation market during the forecast period, supported by its dominant role in advanced semiconductor production and continued capacity expansion across leading foundries and IDMs. As manufacturers shift toward sub-10 nm and EUV-enabled process technologies, 300 mm fabs rely heavily on high-throughput automation systems, including automated material handling systems (AMHS), robotics, advanced process control software, and integrated metrology, to maintain stringent yield, contamination control, and cycle-time requirements. The segment benefits from strong demand for logic, memory, and advanced packaging devices used in AI, 5G, automotive electronics, and high-performance computing. Significant investments in 300 mm greenfield fabs across Taiwan, South Korea, Japan, China, and the US further accelerate the need for highly automated workflows and real-time data-driven decision-making. As process complexity rises and wafer volumes scale, the 300 mm segment continues to anchor global automation adoption, underscoring its central role in enabling high-efficiency, high-yield semiconductor manufacturing.
By region, the Americas is expected to be the fastest growing from 2025 to 2032.
The Americas region is projected to exhibit the highest CAGR in the fab automation market from 2025 to 2032, driven by substantial investments in advanced semiconductor manufacturing, modernization of existing fabs, and renewed government focus on strengthening domestic chip production. The region, comprising the US and the Rest of the Americas, is advancing multiple greenfield and brownfield projects aimed at supporting leading-edge logic, memory, and heterogeneous integration technologies. As new fabs emphasize high-throughput, contamination-free, and energy-efficient operations, demand is rising for Automated Material Handling Systems (AMHS), robotics, environmental control systems, advanced metrology hardware, and factory communication infrastructure. The US leads regional growth, fueled by substantial capital expenditure from IDMs, foundries, and OSATs, alongside incentives under national semiconductor policies that prioritize automation, digital transformation, and workforce optimization. Increasing adoption of sub-10 nm and EUV-enabled processes is further accelerating the need for precision handling equipment and intelligent automation platforms. Meanwhile, countries in the Rest of the Americas are expanding backend assembly, test, and packaging capabilities, creating additional demand for scalable, cost-efficient automation solutions. Collectively, strong policy support, rising semiconductor consumption, and large-scale capacity expansion position the Americas as a high-growth hub for next-generation fab automation.
The report profiles key players such as Daifuku (Japan), Murata Machinery (Japan), Atlas Copco (Sweden), Rorze Automation (Japan), Ebara (Japan), FANUC (Japan), Kawasaki Heavy Industries (Japan), Hirata Corporation (Japan), Yaskawa (Japan), and KUKA AG (Germany). These companies pursue product launches, expansions, partnerships, and acquisitions to strengthen their fab automation capabilities.
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